SLIDE 1
- Our Plan to
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Preserve Rural Post Offices May 9, 2012 Current Retail Locations - - PowerPoint PPT Presentation
Preserve Rural Post Offices May 9, 2012 Current Retail Locations - - PowerPoint PPT Presentation
Our Plan to Preserve Rural Post Offices May 9, 2012 Current Retail Locations 3 Alternate Access 4 Retail Mix 39% Customer Visits to Post Offices 2 7 % d r o p - 3 5 0 m i l l i o n f e w e r v
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4
Alternate Access
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39%
Retail Mix
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2 7 % d r
- p
- 3
5 m i l l i
- n
f e w e r v i s i t s t
- P
O s
- Customer Visits to Post Offices
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Average cost to operate: $114,000 annually Bottom 4,500 earn an average of $15,000 annually: equivalent to $52 and 4.4 customer window visits per day Cost to serve is increasing, revenue and visits are decreasing
Rural Post Offices
CLOSING THE COST GAP
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Rising costs to maintain Post Offices 88% of rural Post Offices losing money Financial crisis Rural customers’ desire to preserve Post Office
Situation
USPS commitment to rural America
Achieving a Retail Balance
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Customers’ preference for more convenient access 88% of rural Post Offices losing money Financial crisis
Achieving a Retail Balance
Solution
New framework based on four options for rural Post Offices
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10
Maintain
Maintain the Post Office with reduced retail window service hours to match customer need
Deliver
Provide delivery service using either rural carriers or highway contract routes
Engage
Engage a local establishment within the community to establish a Village Post Office
Merge
Merge with a nearby Post Office and provide service from that location Need new photo
Four Paths for Rural Retail Access
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Lobby and P.O. Box access Modified window hours Maintain ZIP Code Retain community identity
Maintaining Rural Post Offices
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Key Learnings 46% would prefer closing Post Office for alternate access Rural Customer Survey Results
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Analyzed 17,728 rural Post Offices 4,561 to remain at 8 hours of window service Starting review process for approximately 13,000 Post Offices Upgrading 400 Post Offices from designated closure Closing more than 100 non-operating Post Offices
Rural Post Offices
Rural Post Offices will remain open unless community has strong alternative preference
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Two-year Process with Phased Approach
2012 2014 2013
SEPTEMBER
Community meetings with surveys begin
Next Steps
FALL 2014
Completion
SEPTEMBER 2012 TO FALL 2014
Phased implementation
END OF MA Y
PRC filing 90 Day PRC Review
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Methodical process, two year transition
Options available for staying with the Postal Service
Incentive to be provided
Rural Post Offices
OUR COMMITMENT TO EMPLOYEES
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- Preserves rural Post Offices
- Allows communities to retain identity
and ZIP Code
New Path Forward
- Postal Service will engage
communities
- Will obtain local input before changes
are made
Community Engagement
- Saves over half a billion dollars a year
- Consistent with five-year plan
- Helps return Postal Service to
financial stability
Achieves Savings
Conclusion
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